F1 Teams Call For Renegotiation
Following the FIA’s closing tenders for the standard-engine contract, one of the cost-cutting measures put forth by governing body, F1 teams are demanding a bigger share of the sport’s revenues.
This was set into motion after the teams became increasingly alarmed by the interest being paid by the FIA to service its £3.2bn debt.
Over the last 11 months, CVC Capital, which bought the sport two years ago, has loaded more than $2.4bn of bank loans onto it during the leveraged buyout.
The loans cost Delta3, the sport’s holding company, $229.6m in interest last year, which is almost half of what is distributed to the constructors. While CVC has pointed out that constructors are receiving a larger take than what was agreed to under the terms of 2008-2012 deal, the teams are still unsettled by the amount of interest being paid off – as well as the cost-cutting measures they have been facing.
The teams now allegedly want to renegotiate with the sport’s commercial operators at Delta3, led by F1’s commercial rights holder, Bernie Ecclestone. Despite the increased revenues from the 2008 commercial memorandum, no formal contract has been agreed to.
